AlphaBriefing – Institutional Insights (June 2025)
Stablecoin Surge: Senate Passage Boosts Circle, Coinbase Amid Crypto Legislation Momentum
Shares of Circle surged 33.8% and Coinbase jumped 16% on Wednesday after the U.S. Senate passed a landmark stablecoin bill with rare bipartisan support. Robinhood, which also offers crypto trading, gained 4.5%. The legislation, seen as a major turning point for crypto regulation, aims to provide clear rules for issuing and managing dollar-pegged tokens like Circle’s USDC. Backed by reserves such as U.S. dollars and short-term Treasury bills, stablecoins offer the convenience of crypto with reduced volatility. Circle, which went public this month with an IPO price of $31, closed at $199.59 and was up another 4.4% after hours. Its USDC token, co-founded with Coinbase, holds a market value of $61.4 billion and helped drive Coinbase’s stablecoin revenue up nearly 51% in Q1.
The bill now heads to the Republican-controlled House, where it must pass under the GENIUS Act label before potentially reaching President Trump by the end of summer. Analysts from Barclays and Bernstein see the legislation as one of two key crypto bills that could reshape the sector, with the potential to expand stablecoin use beyond crypto into mainstream financial infrastructure. If enacted, the law would require stablecoin issuers to hold liquid assets and disclose reserve compositions monthly. Circle CEO Jeremy Allaire called the moment “historic,” predicting it would enhance U.S. economic competitiveness for decades. Analysts at KBW noted stablecoin adoption could also provide a tailwind for major cryptocurrencies like bitcoin, while Zacks’ Andrew Rocco emphasized the credibility this framework could bring to the $256 billion market.
Bitcoin ETF Inflows Hit $2.4B Over 8 Days as Ethereum Momentum Slows Post $1.4B Streak
U.S. spot Bitcoin ETFs extended their net inflow streak to eight consecutive days on Wednesday, bringing in $389.5 million and pushing the total to $2.4 billion over the period, according to data from The Block. BlackRock’s IBIT led the daily inflows with $278.9 million, followed by Fidelity’s FBTC at $104.4 million. Smaller contributions came from Bitwise’s BITB ($11.3 million), Grayscale’s BTC mini ($10.1 million), and Hashdex’s DEFI ($1.2 million), while Grayscale’s converted GBTC fund recorded the only net outflow of $16.4 million. IBIT accounted for $2.3 billion, or 96%, of the eight-day total. ETF Store President Nate Geraci noted on X that nearly $11.5 billion has flowed into U.S. spot Bitcoin ETFs in 2025 alone. Since their January 2024 debut, the funds have seen cumulative net inflows of $46.9 billion, with almost $125 billion in total assets under management.
In contrast, U.S. spot Ethereum ETFs saw net inflows of $19.1 million on Wednesday, led by $15.1 million into BlackRock’s ETHA fund. The Ethereum products’ previous 19-day inflow streak ended last week, having brought in $1.4 billion. Since then, momentum has slowed. During that same 19-day period, Bitcoin ETFs brought in more than $3.8 billion. Total net inflows for Ethereum ETFs, which launched later in July 2024, now stand at $3.9 billion.
Solana Filings, Truth Social ETF, and the Coming Wave of Crypto Index ETF Decisions
A key deadline looms: by July 2, the SEC is expected to decide whether to allow the Grayscale Digital Large Cap Fund (GDLC) to convert into an ETF. Bloomberg analysts James Seyffart and Eric Balchunas believe GDLC and Bitwise’s 10 Crypto Index Fund (BITW) have a strong shot, noting their limited exposure to altcoins could help them win approval even without each underlying asset being individually sanctioned for ETF use. Hashdex CIO Samir Kerbage agreed, citing that BTC, ETH, and SOL make up over 90% of the Nasdaq Crypto Index. He sees the recent solana ETF updates as a step toward broader index ETF approvals. Van Buren Capital’s Scott Johnsson suggested index ETF approvals could lead to a general rule that simplifies future single-asset approvals—making the upcoming SEC decision one to watch closely.
The SEC’s decision in early-June to halt proposed staking-enabled crypto ETFs from Rex Financial and Osprey Funds likely won’t impact other issuers’ chances of incorporating staking into their funds, according to industry analysts. Yorkville America Digital has filed a new proposal for a Truth Social-branded ETF that would hold both bitcoin and ether, following its April partnership with Trump Media and Technology Group. CoinShares also entered the spot solana ETF race, becoming the eighth issuer to do so. The SEC has been actively engaging with solana ETF issuers regarding S-1 amendments, signaling momentum. A source familiar with the filings said the “flurry” of recent updates suggests the agency may be pushing to organize and potentially greenlight these products. While those adjustments focused on single-asset funds, many eyes are now on the broader crypto index ETFs in the pipeline.
Crypto Treasury Companies: Billions Raised, Risks Reframed, and a New Financial Era Unfolding
A growing number of public companies are transforming into crypto treasury vehicles, raising billions to stockpile digital assets like BTC, ETH, SOL, and XRP. While fears of a bubble persist, Presto Research argues the risks today are far more nuanced than in past crises like Terra or 3AC. These firms—often former operating companies, SPACs, or shells—leverage financial tools like private equity, convertible bonds, and perpetual preferred shares to accumulate crypto without using collateral. Presto Head of Research Peter Chung likens the movement to historic financial innovations such as leveraged buyouts or ETFs. The strategy, pioneered by Strategy and its co-founder Michael Saylor, has spread across 228 firms including Metaplanet, Semler Scientific, and Trump Media. Though some worry about forced liquidations, Presto data shows that only a third of the $44 billion raised or pending is debt-financed, and 87% of that debt is unsecured, mitigating broader market risk if discipline holds.
Chung outlines two primary risks: collateral liquidation and activist investor pressure. While some firms could be forced to sell crypto during cash crunches, most have avoided collateralized loans, reducing the threat of cascading margin calls. Activists might push for buybacks or tender offers when firms trade below NAV, but outright liquidation is rare due to cost and complexity. Comparisons to Grayscale’s 2021 GBTC premium overlook structural differences, Chung adds, arguing that some premium is justified given recurring accumulation strategies. The model may soon extend to altcoins like SOL and XRP, especially with staking potential enhancing long-term returns. Still, analysts like Sygnum and Coinbase Institutional’s David Duong warn that aggressive corporate accumulation could eventually present systemic challenges. Saylor remains confident in Strategy’s resilience, even in scenarios involving a prolonged 90% BTC decline. Chung concludes that while the trend introduces real risks, it’s not inherently destabilizing—success will depend on each company’s capital discipline and ability to weather market volatility.
